Hacker News new | past | comments | ask | show | jobs | submit login

I tend to agree, yet I also believe if I'm not mistaken this is kind of how servers at restaurants work too. They have some minimal base wage, then tips. If their tips do not take them to minimum wage, the employer must pay the difference to get them to minimum wage. In essence, we as customers are subsidizing the restaurant owners to get their employees to at least minimum wage pay. So the question is why are we just now getting outraged when this has been being done to people for a while in certain places, and is still happening to servers but it's somehow not complained about that I'm aware of.

edit: looks like it depends on which state you're in in USA on this. Mostly West Coast seems to have 'sane' ones: https://www.dol.gov/whd/state/tipped.htm




Generally though once a server has gotten a couple tables (2-4 maybe but it depends a lot on the local tipping culture and the restaurant) done all of the rest of the money tipped is all extra and unless it’s a really slow day most tips are going to the server. DoorDash applied their adjustment to every single order so unless a driver was tipped more than a certain amount (I’ve heard $10) they never received the tip.

Also there’s a decent amount of talk about how bad tipping is and talks about getting rid of it but it’s a culturally ingrained thing so it’s not going to go easily, especially as it benefits restaurant owners so they’re unlikely to change unless there’s a lot of social and business pressure to do so.


All of what you say seems basically true, I still don't understand why the tipping subsidizing what restaurateur should pay as wages isn't even seen as much of an issue but DD drivers should be a special case, is all, other than "we're more used to it at restaurants so it's fine"


Most tips actually go straight to the employee after the first few dollars tipped every hour where DoorDash took 100% of tips below $10 on every order.

For example: In my state of NC for example minimum wage is $7.25/h and tipped minimum wage is $2.13/h so any money tipped after the first $5.12/h is all going to the employee. $5 worth of tips isn't that much to get per hour even averaging across a whole shift that includes both a mealtime rush and some off hours.


It's not a matter of agreement, it's a violation of federal labor law for people not involved in the service from taking any portion of a tip. Tony Xu was taking parts of tips to reduce the company's wage commitments.


And my point was in various US states this is apparently legal to do if you trade Tony Xu for some restaurant owner and DD drivers for servers. So why has it been Ok for restaurants to do this? Does a different law apply to DD situation?


It's been OK for restaurants because the tipped wage was a fixed number.


You say Tony was taking tips, Tony says he was grossing up workers who don't earn enough tips. The whole outrage is people want to pay less than the job is worth and then blame Tony for it from his side.


No, the model was to pay $X unless there's a tip, in which case Tony takes it and pays $X-$tip (unless the tip is over 100%?). Management is taking tips, which is hella illegal and has been (to varying degrees) for quite some time, certainly since before DD existed. tl;dr: wage+tips, not wage-tips.




Applications are open for YC Winter 2020

Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: